Workplace pension transfer values are still falling, according to new data.
The number of retirement savers transferring out of their direct benefit pensions is also dwindling, according to figures from monitor XPS Pensions Group.
The average transfer value of a pension in June was £240,800 – down from £241,500 at the end of May and below the all-time peak of just short of £250,000 reached in March.
The firm’s Transfer Activity Index also showed a drop with an annual equivalent of 0.87% savers seeking a switch, compared with 0.94% the month before.
“This remains below the average that we have seen over the last 12 months of 1.18%,2 said Mark Barlow, a senior consultant at XPS Pensions Group.
“June has seen a welcome stabilisation of the transfer market. Transfer values remain relatively flat and activity continues to run at an annual rate just below 1%.
“The results of the Financial Conduct Authority study into direct benefit pension transfer advice are concerning.
“The recommendation rates are significantly higher than that seen by our clients who have appointed a financial adviser to support their members. There is a risk that members are making decisions that are not in their best interests and we welcome the steps that the FCA is taking to improve the standards of pension transfer advice.”
The data shows that although transfer values remain high, the trend looks as if they will return to less than £240,000 soon, while transfer inquiries have steadily fallen over the past 12 months.